863.01/393: Telegram
The Ambassador in France (Straus) to the Secretary of State
[Received July 16—1:40 p.m.]
607. In conversation at the Foreign Office this morning it was said that they do not yet see clearly the exact significance and ultimate implications of the Austro-German accord. At first glance and on the face of it the accord would seem to be a contribution towards peaceful adjustment of European problems but when looked at from a long-term point of view it gives rise to many doubts. From the German viewpoint however it would seem to be a great success: Hitler is in a position to claim credit for making a constructive effort at conciliation in Central Europe while as a practical matter he probably will be found to have given up nothing; on the contrary in the long run he will probably have made enormous gains since German economic and political influence should steadily increase in Austria. From the Italian point of view the advantages of the agreement would seem doubtful: the German recognition of Austria’s independence may prove as indicated above utterly illusory; German and Italian objectives may come into conflict; and furthermore it is felt that the Italian policy of trying to play off one country against another cannot continue much longer to be successful since events in Europe are marching swiftly, the issues are becoming simpler and before long the necessity of making a definite choice as to which side to line up with will be imposed upon Italy by the force of events. Obviously, it was added, the two countries which have the most to worry about as to the possible implications of the Austro-German Agreement are Czechoslovakia and Poland.
Regarding the proposed Brussels conference of Locarno Powers, no definite decision has yet been reached.78 The French point of view is that in accordance with Eden’s letter of April 1st79 there should now be a meeting of the British with the French and Belgians to consider the situation.
Cipher copies to London, Berlin, Rome, Vienna, Geneva.